Editor’s note: This article was first published on FSA’s sister publication, International Adviser.
The Securities and Exchange Commission of Thailand filed a criminal complaint against three offenders for operating securities business without a licence on 28 January.
The complaint was lodged with the Economic Crime Suppression Division of the Royal Thai Police and involves Devere & Partners (Thailand); Broadgate Mutual Fund Brokerage Securities (Thailand); and Frederick Ian McIntyre, managing director of both companies.
A spokesperson from DeVere Group told International Adviser: “The case refers to an administrative issue that caused some parts of the local licence to become unmaintained by former representatives of the company. All ex-representatives in question had left the company by February 2020.
“We are confident that there has been no detriment to clients and there have been no client complaints.”
RECORDS AND DETAILS
According to the SEC, it received a tip from a reliable source and, following further inspection, found that Devere & Partners and McIntyre had operated securities brokerage and investment advisory businesses without a license.
It added that there is evidence of their illegal activities, including:
- Records of investment advice given to clients,
- Records of clients’ trading executions,
- Details of clients’ trading transactions,
- Name and contact addresses of clients in Thailand,
- Records of their meeting with clients,
- List of tradable securities, and
- Records of investment fees charged to clients.
Broadgate aided and abetted Devere & Partners and McIntyre by allowing them to use its name and email to undertake the unlicensed business, the SEC added.
POSSIBLE PENALTIES
The trio have been accused of breaching section 90 of the Securities and Exchange Act, which states that no person shall undertake securities business without license.
Penalties include imprisonment for between two and five years plus a fine ranging from THB 200,000 to THB500,000 ($6,653 to $16,633).
A further penalty, not exceeding THB 10,000, can be imposed for every day the contravention continues.
MAKE A RECOMMENDATION
However, the SEC noted that the filing of a criminal complaint is merely the commencement of a criminal procedure during which an official will perform an investigation before making a recommendation to the public attorney who has the authority to prosecute.
The power to adjudicate whether any person is guilty or not is vested on the court of justice, the regulator stated.
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